Beyond Housing has issued a £250m bond with an all-in rate of 2.125%, which will be used for environmental, social and governance (ESG) projects.
The North East-based 15,000-home landlord said the funds will be used to deliver new affordable homes and deliver ESG targets over the next five years.
The 30-year bond was priced at a spread of 90 basis points over gilts – the government cost of borrowing – with an all-in coupon of 2.125%.
Beyond’s bond was four times oversubscribed by investors. The housing association has decided to use £165m of the funds now, with the remaining £85m retained to issue at a later date.
A handful of housing associations have recently capitalised on investor interest in ESG, including PA Housing which issued a £400m sustainability bond earlier this month. Social housing bond aggregator The Housing Finance Corporation also recently moved £1bn of existing debt onto a new social bond framework.
Savills’ housing valuation team supported Beyond on the transaction.
Rosemary Du Rose, chief executive of Beyond, said: “This bond will enable us to invest in existing homes, making them more energy efficient and helping us move to become a carbon zero organisation. In addition, it will help us deliver our ambitious development programme, providing value for money and securing the company’s long-term plans.
“Securing the first long-dated sustainability bond in the social housing sector is a landmark achievement for Beyond Housing and a testament to the work of our team in delivering exceptional financial and sustainability credentials.”
Andrew Smith, director of affordable housing valuations at Savills, said: “We were very happy to be part of the team that delivered this groundbreaking ESG bond, which will enable Beyond Housing to both deliver new homes and invest in ESG projects in its existing stock.”
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